Shopee parent Sea jumps as Q3 revenue comes ahead of expectations

Sea Ltd. (NYSE:SE) saw its shares pop more than 7% in premarket trading Tuesday after the tech conglomerate reported better-than-expected revenue for the third quarter of fiscal 2024 year.

The company delivered earnings per share (EPS) of $0.24 for the period, matching analyst expectations.

Revenue jumped more than 30% year-over-year to $4.33 billion, also above the consensus projection of $4.08 billion.

By segment, e-commerce revenue came in at $3.18 billion, topping the expected $2.99 billion.

Digital entertainment revenue totaled $497.8 million, surpassing the $474.7 million estimate and digital financial services revenue reached $615.7 million, ahead of the forecasted $547.3 million.

Sea reported an adjusted EBITDA of $521.3 million, well above the $480.9 million expected by analysts.

“I’m happy to report that it has been another solid quarter. We are seeing high growth across all our three businesses,” said Forrest Li, Sea’s Chairman and CEO.

“Shopee is on track to deliver our full-year guidance of mid-twenties year-on-year GMV growth,” he added.

Talking about profitability, Li said, “I am very proud that we also improved our profitability while getting back to high growth. This quarter, Shopee achieved positive adjusted EBITDA, in both Asia and Brazil. As we continue to focus on delivering growth, we expect Shopee to remain profitable going forward.”